German GDP Growth Confirmed at 0.7% in Q2


German economy expanded 0.7 percent quarter-on-quarter in Q2, up from 0.0 percent reported in the first three months of the year, driven by rising consumption and investment.

In a quarter-on-quarter comparison (upon price, seasonal and calendar adjustment), the main positive contribution was made by domestic demand. In the second quarter of 2013, both household (+0.5 percent) and government final consumption expenditure (+0.6 percent) were up from the first quarter. 

Also, fixed capital formation rose markedly. Gross fixed capital formation in machinery and equipment increased 0.9 percent on the previous quarter. Gross fixed capital formation in construction rose even 2.6 percent which, however, was probably also due to weather-related catch-up effects following the unusually long and cold winter. 

In addition, in the second quarter of 2013, more goods and services were exported (+2.2 percent) than in the first three months of the year. In the same period, imports (+2.0 percent) rose slightly less strongly. Consequently, the balance of exports and imports supported the gross domestic product, contributing a calculatory growth of 0.2 percentage points.

German GDP Growth Confirmed at 0.7% in Q2


Destatis | Nuno Fontes | nuno@tradingeconomics.com
9/19/2013 3:06:26 PM